Everfi Modules 1, 2, 3, 4, 5, 6, 7, 8, 9 Final Quiz Questions and Answers Flashcard

question

Interest is – a charge for lending money to a bank – the amount owed for borrowing money – the amount added into your savings when opening a bank account – a charge for the convenience of accessing money stored in your bank account
answer

the amount owed for borrwoing money
question

Which of the following is a type of savings vehicle? • Certificate of Deposit • Money Market Account • Checking Account • Both A &B
answer

Both A &B
question

John just opened a savings account and wants to maximize the amount of interest he earns. Which of the following actions would enable him to earn MORE interest? – Selecting an account with a high interest rate. – Leaving his money in the account for long period of time. – Transferring money into his checking account each month. – Both A & B
answer

Both A & B
question

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money? – Compounding 1 time a year – Compounding 4 times a year – Compounding monthly – Compounding daily
answer

Compounding daily
question

To earn as much interest as possible, you should open a savings account that earns _______ interest and has the ______ interest rate. • compound; lowest • compound; highest • simple; lowest • simple; highest
answer

compound; highest
question

The purpose of a budget is to: • help you plan how you will spend the money you earn or receive • stop you from spending too much money • increase the balance of your savings account • tell you how much you owe the government in taxes
answer

help you plan how you will spend the money you earn or receive
question

Which of the following savings vehicles usually requires a high minimum balance? • Simple savings account • Certificate of Deposit (CD) • Checking account • All of the above
answer

Certificate of Deposit (CD)
question

Which of the following is generally true about savings vehicles? • Savings vehicles are only useful for long-‐term investments • People should evaluate different forms of savings vehicles based on their needs • Savings vehicles are never insured • All of the above
answer

People should evaluate different forms of savings vehicles based on their needs
question

Which of the following accounts will give you the LEAST access to your money? • Simple savings account • Certificate of Deposit (CD) • Checking account • Cash
answer

Certificate of Deposit (CD)
question

When it comes to saving money, what is a good rule of thumb? • Keep most of your savings in your checking account • Put aside money for savings each month • Choose the savings account with the lowest interest rate • Putting anything you can’t afford on your credit card
answer

Put aside money for savings each month
question

Which of the following is a unique feature of credit unions? • Credit unions are typically owned and run by their members. • Credit unions limit membership to certain people or groups. • Credit unions offer a wide variety of banking services. • Both A & B
answer

Both A & B (correct answer)
question

The best way to ensure the accuracy and safety of your accounts is to: • Monitor your online accounts regularly • Shred your paper account statements weekly • Balance your checkbook annually • Call your customer service center daily
answer

Monitor your online accounts regularly
question

Which of the following represent typical account fees? – ATM fee – Service fee – Minimum balance fee – All of the above
answer

question

Which of the following is NOT one of the responsibilities of the Federal Reserve? • Supervising the Reserve banks • Establishing the federal budget • Maintaining a stable banking system • Setting the nation’s monetary policy
answer

Establishing the federal budget
question

The three parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the: • Board of Governors • United States Mint • Department of the Treasury • Secretary of State
answer

Board of Governors
question

Which type of account is typically the MOST liquid? – Checking account – Savings account – Certificate of Deposit – Exchange Traded Fund
answer

question

What’s the best strategy for avoiding ATM fees? – Only use ATMs close to your house – Only use ATMs to withdraw cash – Only use ATMs in your bank’s network – Only use ATMs you have used before
answer

question

What’s the purpose of balancing or monitoring your checking account? • To help you calculate how much money you have in your account • To keep an estimation of how many checks you write • To find out which checks you have bounced • To stop identity theft from occurring
answer

To help you calculate how much money you have in your account (
question

What part of a check is the LEAST important? • memo line • signature line • routing number • The check number
answer

memo line
question

Savings accounts usually offer _________ interest rates than checking accounts. It is _________ to access your money in a savings account than in a checking account. • lower; easier • higher; harder • lower; harder • higher; easier
answer

higher; harder
question

Which of the following statements comparing debit cards to credit cards is TRUE? • Debit cards allow you to draw funds directly from your checking account. • Debit cards typically offer greater fraud protection than credit cards. • Debit cards never require a signature to finalize a purchase like credit cards. • Debit cards charge higher interest rates on purchases than credit cards.
answer

Debit cards allow you to draw funds directly from your checking account. (correct answer)
question

Making a minimum payment: • Means you are paying a small portion of your total credit card debt • Is the same thing as making a late credit card payment • Will have a negative effect on your credit score • Will cause your credit card to be cancelled
answer

Means you are paying a small portion of your total credit card debt (correct answer)
question

What is a credit card balance? • The amount of interest you must pay the credit card company • The required minimum payment to your credit card company • A way to track your incoming and outgoing purchases • The amount of money you still owe to the credit card company
answer

The amount of money you still owe to the credit card company (correct answer)
question

Which of the following is NOT a common credit card fee? • Late fee • Annual membership fee • Balance transfer fee • Minimum payment fee
answer

Minimum payment fee (correct answer)
question

What payment type can help you stick to a budget? • Credit cards • Debit cards • Payday loans • Cash advances
answer

Debit cards (correct answer)
question

Which of the following payment types require you to pay upfront? • Money order • Cashier’s check • Prepaid card • All of the above
answer

All of the above (correct answer)
question

The annual percentage rate on a credit card determines: • The amount of interest you are charged on credit card purchases • The amount your credit limit can go up within a year • How many credit cards that you can own • None of the above
answer

The amount of interest you are charged on credit card purchases (correct answer)
question

Which of the following can increase your credit card’s APR? • Paying the minimum • Missing a credit card payment • Paying off the full balance • Cashing in on rewards points
answer

Missing a credit card payment (correct answer)
question

If you are planning to carry a large balance on your credit card, which of the following credit card features should you look for? • Low APR • Low annual fees • Lots of credit card rewards • A large credit limit
answer

Low APR (correct answer)
question

Which payment method typically charges the highest interest rates? • Credit cards • Cashier’s checks • Prepaid cards • Payday loans
answer

Payday loans (correct answer)
question

Which of the following MOST influences your credit score? • Types of Credit Used • Payment History • Length of Credit History • Amounts Owed
answer

Payment History (correct answer)
question

Which of the following actions would IMPROVE your credit score? • Closing out old credit cards • Paying off your credit card bill • Using a large portion of your credit limit • Opening a new savings account
answer

Paying off your credit card bill (correct answer)
question

How many free credit reports are you legally entitled to each year? • One credit report each year • Three credit reports each year • One credit report from each credit bureau • Three credit reports from each credit bureau
answer

One credit report from each credit bureau (correct answer)
question

All of the following make up the big three credit reporting agencies EXCEPT: • Federal Reserve • Experian • Equifax • TransUnion
answer

Federal Reserve (correct answer)
question

Which of the following actions can NEGATIVELY impact your credit score? • You disputed an item on your credit report. • You forgot to pay the cable bill. • You pay all your bills in cash. • You use a small amount of your available credit.
answer

You forgot to pay the cable bill. (correct answer)
question

Having a low credit score can make it more difficult to: • Obtain a car loan • Open a new credit card • Secure an apartment lease • All of the above
answer

All of the above (correct answer)
question

Which of the following actions has NO impact on your credit score? • You inquire about a credit card charge. • You use a large percentage of your credit limit. • You opened several new credit cards last week. • You send in your credit card payment a couple days late.
answer

You inquire about a credit card charge. (correct answer)
question

Which of the following statements about credit scores is TRUE? • Credit scores reflect how likely individuals are to repay their debts. • Credit scores range from the low 300’s to the mid 800’s. • Each person has three credit scores. • All of the above.
answer

All of the above. (correct answer)
question

Having a good credit score is important because: • It can impact your ability to get a driver’s license. • It can impact your ability to be approved for bank loans. • It can impact how much you will have to pay the government in taxes. • It can impact how much you will have to pay for college.
answer

It can impact your ability to be approved for bank loans. (correct answer)
question

Which action is LEAST important to maintaining a healthy credit score? • Make on‐time payments • Check your credit report annually • Know your exact credit score • Fix inaccurate information on your credit report
answer

Know your exact credit score (correct answer)
question

When referring to student loans, what is a grace period? • The time period between graduating college and starting your first job when you don’t have to pay back student loans • The period after graduating or leaving school before you must begin paying back student loans • The amount of time you have to pay back your entire student loan amount – None of the above
answer

The period after graduating or leaving school before you must begin paying back student loans (correct answer)
question

Which of the following loans will typically offer the lowest interest rate? • Payday loan • Federal Student Loan • Private Loan • Both A & B
answer

Federal Student Loan (correct answer)
question

The Federal Application for Student Aid (FAFSA) form: • must be completed by your guidance counselor • can be submitted on online or by mail • can only be filled out by U.S. citizens • is used to apply for private loans
answer

can be submitted on online or by mail (correct answer)
question

You are looking for ways to pay for your higher education costs. Which of the following options will require you to pay back any money you receive? • Grants • 529 plans • Federal student loans • Scholarships
answer

Federal student loans (correct answer)
question

Your sister is starting 9th grade next year and is thinking about going to college. What step would you recommend she take first? • Fill out her FAFSA form • Sign up for college admission exams • Start applying for grants & scholarships • Look for school clubs & organizations she’s interested in
answer

Look for school clubs & organizations she’s interested in (correct answer)
question

After you send in your FAFSA form, what will you receive back? • Your IRS Data Retrieval Form • Your Student Aid Report • A copy of your family’s tax returns • A copy of your completed FAFSA form
answer

Your Student Aid Report (correct answer)
question

Using the FAFSA form, you can apply for: • Federal student loans • The federal work-‐study program • Private loans • Both A & B
answer

Both A & B (correct answer)
question

Which of the following statements about federal student loans is TRUE? • The interest rate on your loan will be fixed over time. • The interest rates on federal loans and private loans are similar. • You can only get federal student loans if you demonstrate financial need. • You do not accumulate interest on federal loans.
answer

The interest rate on your loan will be fixed over time. (correct answer)
question

The return on investment (ROI) from education is typically the highest for: • A high school graduate • A college applicant • Someone with a 2‐year (Associate) degree • Someone with a 4‐year (Bachelor’s) degree
answer

Someone with a 4‐year (Bachelor’s) degree (correct answer)
question

Which loan type requires you to make loan payments while you’re attending school? • Unsubsidized federal loan • Subsidized federal loan • Both A & B • Neither A nor B
answer

Neither A nor B (correct answer)
question

Jim is in the market for a car, but he’ll probably only need it for a couple of years. After that, he plans on moving into the city and using public transportation. He has a short commute to work, so he won’t be putting many miles on his vehicle. What’s the best transportation option for Jim? • Use his savings to buy the car in full • Buy the car using an auto loan • Lease the car • Take public transportation
answer

Lease the car (correct answer)
question

All of the following components are commonly found in rental housing agreements EXCEPT: • Whether the renter can have pets in the house • How much the renter will pay • What type of renter’s insurance the renter must buy • Which repair types the renter will be responsible for
answer

What type of renter’s insurance the renter must buy (correct answer)
question

What is a mortgage? • A type of rent used to pay for housing • A type of loan used to buy property • A measure of the value of a home • A measure of your credit rating
answer

A type of loan used to buy property (correct answer)
question

What is a mortgage? • A type of rent used to pay for housing • A type of loan used to buy property • A measure of the value of a home • A measure of your credit rating
answer

A type of loan used to buy property (correct answer)
question

A _________ is generally considered an appreciating asset because it will _________ in value over time. • car; increase • car; decrease • house; increase • house; decrease
answer

house; increase (correct answer)
question

Renting provides _________ flexibility but can lead to _________ costs in the long-‐term. • greater; lower • greater; higher • less; lower • less; higher
answer

greater; higher (correct answer)
question

John would like to move from the suburbs into the city, but the rent in the city is very high. John has found an apartment he really likes, but he can only afford about 60% of the monthly rent. What is the best housing option for John? • Purchase a home in the city center instead. • Rent the apartment anyway. • Rent the apartment with a roommate. • Purchase a home in the suburbs instead.
answer

Rent the apartment with a roommate. (correct answer)
question

Which of the following are costs associated with owning a car? I. Fuel II. Insurance III. Repairs IV. Wear & Tear fees• I, III, and IV • I, II, and IV • I, II and III • I, II, III, and IV
answer

I, II and III (correct answer)
question

Someone may choose to own a car instead of leasing because: • The car can be resold later to make some money back. • The car can be resold later for a higher price. • The maintenance costs for a leased car are generally higher. • The insurance costs for a leased car are higher.
answer

The car can be resold later to make some money back. (correct answer)
question

One reason to buy a home instead of rent a home is: • Homes have the potential to appreciate in value over time. • Homes have few maintenance costs. • Buying a home requires less money upfront. • Buying a home is a more flexible housing option.
answer

Homes have the potential to appreciate in value over time. (correct answer)
question

Which of the following are NOT deducted on a typical paystub: • Sales tax • Social security tax • State income tax • Medicare tax
answer

Sales tax (correct answer)
question

Which of the following statements about taxes is FALSE? • Taxes are collected at the local, state and federal level • Taxes at the local, state and federal level are all equal • Some states don’t collect sales tax. • Some states don’t collect income tax
answer

Taxes at the local, state and federal level are all equal (correct answer)
question

Insurance can help you: • minimize monthly expenses • protect against unexpected accidents • reduce the chances of getting into an accident • cover all out‐of‐pocket costs
answer

protect against unexpected accidents (correct answer)
question

When starting a new job, the form you complete to determine how much tax to withhold from your paycheck is the _______. • 1040 EZ • 1099 • W-2 • W-4
answer

W-4 (correct answer)
question

When you purchase an item in a store, you may be charged __________. • income tax • capital gains tax • sales tax • property tax
answer

sales tax (correct answer)
question

Your auto insurance policy has a $200 monthly premium and $700 deductible. What is the maximum amount you will have to pay out-of‐pocket before your insurance covers your costs? • $200 • $500 • $700 • $900
answer

$700 (correct answer)
question

Jan pays $70 each month for her auto insurance policy. This regular payment is called a: • co-‐pay • deductible • premium • claim
answer

premium (correct answer)
question

Which of the following typically have the highest insurance premiums. • Drivers who travel long distances • Drivers who have safe driving records • Older, experienced drivers • Young, inexperienced drivers
answer

Young, inexperienced drivers (correct answer)
question

In which of the following scenarios will you be entitled to pay the least amount of money out-of‐pocket for medical expenses? • You have no insurance. • You have health insurance with a $500 deductible. • You have auto insurance with a $700 deductible. • You have health insurance with a $1,500 deductible.
answer

You have health insurance with a $500 deductible. (correct answer)
question

You have an insurance policy with the terms listed below. How much should you expect to pay the insurance company each month for coverage? YOUR INSURANCE PLAN: Premium = $300/month; Deductible = $500 • $200 • $300 • $500 • $800
answer

$300 (correct answer)
question

Consumer protection laws are meant to: • Protect consumers from spending too much money. • Prevent consumers from buying unnecessary items. • Protect businesses from consumers. • Prevent unfair or deceptive business practices.
answer

Prevent unfair or deceptive business practices. (correct answer)
question

The best way to investigate fraudulent transactions on your credit card is to: • Keep track of your monthly budget. • Review all old bank statements. • Keep a copy of your bank statements in a safe place. • Review your recent credit card statements.
answer

Review your recent credit card statements. (correct answer)
question

The safest action to take if someone claiming to be from your bank calls you to ask for account information is to: • Pull up the bank website and compare information. • Hang up and call back using the bank’s official phone number. • Ask the caller to explain the account information they need in more detail. • Provide only your name and account number.
answer

Hang up and call back using the bank’s official phone number. (correct answer)
question

What is the first action you should take if you suspect there has been a fraudulent charge on your credit card? • Close all bank accounts associated with that credit card. • Contact the credit card company to report the fraudulent charge. • Order your credit report to look for other fraudulent activity. • Call the store where the purchase was made and ask them to remove the charge.
answer

Contact the credit card company to report the fraudulent charge. (correct answer)
question

What is the safest way to dispose of old bank account statements? • Shred them in a paper shredder. • Throw them out in a neighbor’s trash. • Keep them bundled together in a folder. • Put them in the trash unopened.
answer

Shred them in a paper shredder. (correct answer)
question

It is generally safe to provide your Social Security Number to: • Anyone who asks you for it. • Close friends and relatives who do not know it. • School personnel who want to have it on record. • Verified trusted sources that need it.
answer

Verified trusted sources that need it. (correct answer)
question

Identity thieves can use your personal information to: • Open a credit card • Sign up for electricity service • Get a cell phone contract • All of the above
answer

All of the above (correct answer)
question

Which action will be least helpful if you’ve been the victim of identity theft? • Withdraw your money from all accounts. • Report the fraud to each credit bureau. • Ordering your latest credit report. • Contact your bank and credit card companies.
answer

Withdraw your money from all accounts. (correct answer)
question

Which document puts you at the least risk of identity theft? • Cash receipts • Paycheck stubs • Pre-approved credit card offers • Old tax records
answer

Cash receipts (correct answer)
question

Which of the following is the BEST way to protect against identity theft? • Discard old account statements weekly. • Use only local public access Wi‐Fi. • Change online account passwords frequently. • Avoid emails from people who do not like you.
answer

Change online account passwords frequently. (correct answer)
question

When it comes to investing, what is the typical relationship between risk and return? • It depends on the investment mix in your portfolio. • The greater the potential risk, the smaller the potential return. • The greater the potential risk, the greater the potential return. • There is no relationship between risk and return.
answer

The greater the potential risk, the greater the potential return. (correct answer)
question

Diversification is important in investing because… • It helps you to balance your risk across different types of investments • It increases your overall risk, which guarantees that you will make more money • It ensures that you only make low-‐risk investments • It helps you gain the highest rate of return despite any risks.
answer

It helps you to balance your risk across different types of investments (correct answer)
question

Which best describes the difference between stocks and bonds? • Stocks allow investors to own a portion of the company; bonds are loans to the company. • Stocks are a more reliable investment; bonds tend to be more volatile. • Stocks pay interest to investors throughout the year; bonds only pay interest at fixed times during the year. • Stocks allow investors to share in profits; bonds make investors responsible for company debts.
answer

Stocks allow investors to own a portion of the company; bonds are loans to the company. (correct answer)
question

What is the primary reason to issue stock? • To help investors earn a higher rate of return • To raise money to grow the company • To distribute the risk of bankruptcy across more investors • To increase investor awareness of the company
answer

To raise money to grow the company (correct answer)
question

How can investors receive compounding returns? • By selecting a savings account that has a higher interest rate • By investing their earnings back into their original investment • By transferring their earnings into a high‐risk investment • By diversifying their investment portfolio
answer

• By investing their earnings back into their original investment (correct answer)
question

If an investment is considered “volatile”, it means… • the investment will experience rapid growth over time. • the investment is high‐risk, and will its price will increase quickly. • the value of the investment may be hard to predict. • the investment is undervalued and may increase over time.
answer

• the value of the investment may be hard to predict. (correct answer)
question

Which of the following would be considered the highest risk portfolio? • A portfolio made up of 20% savings accounts, 50% mutual funds, and 30% bonds. • A portfolio made up of 40% mutual funds, 40% Treasury bonds, and 10% stocks. • A portfolio made up of 70% mutual funds, 10% stocks, and 20% Treasury bonds. • A portfolio made up of 60% stocks, 30% mutual funds, and 10% Treasury bonds.
answer

• A portfolio made up of 60% stocks, 30% mutual funds, and 10% Treasury bonds. (correct answer)
question

When you buy a ____ , you are loaning money to an organization. • Index fund • Stock • Mutual fund • Bond
answer

• Bond (correct answer)
question

Which of the following correctly orders the investments from LOWEST risk to HIGHEST risk? • Treasury bond − Stock − Diversified mutual fund • Stock − Treasury bond − Diversified mutual fund • Treasury bond − Diversified mutual fund – Stock • Diversified mutual fund − Treasury bond − Stock
answer

• Treasury bond − Diversified mutual fund – Stock (correct answer)
question

Which of the following is generally true about 401(k) and 403(b) retirement plans? • They are plans offered through employers • They offer some tax benefits • They restrict when you can withdraw your money • All of the above
answer

• All of the above (correct answer)

Get instant access to
all materials

Become a Member